Toyota is considering moving production of the GR Corolla from Japan to the UK

First reported by Reuters, sources have revealed that Toyota may be considering moving production of its GR Corolla line from its Toyota City plant in Japan to the Burnaston, UK plant.  

The sources explained to Reuters that the relocation would involve a $56m investment in developing an additional production line at the Derbyshire factory, which will be overseen by Japanese engineers in a planned technology and expertise transfer. The base model for the GR Corolla, the GR hatchback, is already produced at the Burnaston plant before moving to a dedicated high-performance line at the Motomachi Plant in Toyota City, Japan. As such, if production were to be relocated, the Burnaston plant is well-suited to adapt to the additional model.  

The alleged reason for the relocation is due to the US market. However, the sources point to it being a supply-demand decision, rather than in response to recent US tariff action. Demand for the Corolla coming from US consumers outstrips the current production capacity of the Motomachi Site, which produces 8,000 units per year for shipping to all global markets (out of an overall production capacity of 25,000). The planned extra production line at Burnaston will produce 10,000 cars annually, which the sources say will be earmarked for export for the North American market to reduce wait times and ease supply-side pressures. The timeline for this additional output would be mid-2026.  

Toyota has a strong manufacturing base across North America already, to the extent that it topped this year’s North American Automotive OEM Supplier Working Relations Index study. However, the company has been using these hubs to prioritise production for other vehicle types with similarly high US demand – for example, it has invested heavily into domesticating production for some of its EV models, as well as nearshoring truck manufacturing in Mexico. As such, the additional production capacity required for the Corolla has need to be found in other manufacturing hubs.  

If the relocation occurs, it will be the second major investment made by the automaker in the UK this year. Back in March, it was announced that it will launch a Toyota Circular Factory, also at its Burnaston plant. The company plans for this facility to recycle 10,000 vehicles a year and provide 120,000 recycled parts for the European aftermarket. Like with the investments in its North American hubs, this is another example of Toyota moving to regionalise manufacturing – a move that lends credence to the sources’ information and one that will also grow in importance in coming years as regional protectionism in the automotive industry continues to increase.  

Automotive Logistics has reached out to Toyota for comment.